The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-12-16


All is not lovely in the oil trust camp in
Memphis In Tact, there isa possibility
Of uncarthing rich combinations. AZ
o'clock Yesterday NlessIs Taylor d Carroll,
az attorneys ior Holmes Cummins filed
bill in chanccry against the City oil
works. The bill is one Of great Importance
and interest It's object is TO break down
M alleged effort Il; monopoly.
The hill first ccitcs tire names OF the di-
rcc,ors OF the City oil works rs defendants
n follows !. w. Allison, Sam MCCallum,
r. M. Nelson. j. ". Cochran and s. q.
Nelson, IT, The complainant then states
that lac has owned for several years thirty
three and onc-cighth shares in the cor
marathon. amounting 10 Si,333 33i; and
earcasticnlly adds that defendants own the
large amount oi one share each. some
time In 1896. il is complained, defendant
+. NJ. Nelson, then president OF the works
In question. aud owning several thousand
dollars in stock, made n deal with the
"Ainerican Cotton Oh Trust" selling a
majority OF the stock TO that organization,
and giving II management and control.
During The season OF lSS6-S7 the oil
worksearncd, clear OF expenses, $40, l2l NJ,
which wasa fund Tor distribution asprOlits,
But the defendants refused 10 distribute
the sum and illegally withheld the money
for the purpose, which IL IL alleged was
carried into effect, OF enabling the Amcr1-
can Cotton Oil trust 10 better wage war
for seed against certain rivals in the cotton
oil trade throughout the south. This
American oil trust Is not a corporation Of
this State, il a corporation ut all, the object
OF which, IL IL charged, IL the acquisition
of majority Of the cotton seed oil mills in
the southern States, and the contol OF the
markets and prices OF the products OF such
mills, in order 10 establish the trust ~
monopoly and drive out every compel
itor in the cotton seed trade and secure
oil the profit TO itself.
In furthcmnoo Of the illegal purposes, II
II stated that the trust has been bidding
up the price Of seed far above actual value,
and 30 high that its purchase must entail
loss. In addition, products have been sold
below their value. In these ways the or
ganization has been crippling its rivals,
and either forcing them 10 come into the
trust OF lose money.
The struggle brings loss on both sides,
Complainant states that his damage viii
reach 81 600.
Itisiurther stated that for the purpose
al carrying out the Illegal purposes Of the
American Cotton Oil trust, the defendants,
Allison, McCallum and Cochran, hayo
formed a corporation under the laws Of
this STATED and name OF Memphis Cotton
Seed company, for the purpose of buying
and selling cotton seed The defendants,
as directors Of the City oil works, have in
trusted TO the Memphis Cotton Seed com.
pany the purchase OF cotton seed for the
works The complainant charges that the
management Of said City Oil works by the
defendants IN an injury and loss TO him.
self and other shareholders, and that the
defendants. ~ directors Ia the matter ai0ro-
said are guilty OF mismnnagcmcnt waste
aud misapprupnation oi the assets Of the
oil works 10 other ends than can bc law
fully done, and have cOnspircd 10 dclmud
complainant and the minority OF stock.
holders out Of stock by dcprcciating It's
value, and by the use Of shares for th,ir
own proht. In consideration II these
premises, complainant priys that the de-
irndants he required a. show the trans.
actions. 81 the City oil works, exhibiting
the business Of the SEASON 1869,
and the gross net earnings OF that
tcaspn, and what has been done
with the $40. l2i %, shown 10y their books
nsihc net earnings on the 3lst day OF May,
1857; whore they have kept and
where they have used said moneys,
how much and at what time they have
loaned or advanced or otherwise paid
thereof 90 said Memphis Cotton Seed com
pany u. other person ~ persons AMI iol
what usc or purpo-c etc. Also, Il ],
paved that they show the prices they art
paving Tor sccd during this season; non
whom they arr buyiny scrd. what dispoti
iiuu they have malv With the product 81
thc mill this scasOu and 10 whom and al
what lticts whether the business ui thi
spas0n has been profitable, aud II rp how
much. whit seed pwjurt they may ha,,
ON hand AMI iis value. complainant puN
for an injunction restraining the diurl"r
irpm operating the works as belonging Z,
sad American Cotton Oil company, ana,
ior a rccyiycr ui the works, ~ that th
same may Boz operated lor the equal ben,
III II all g. Stockholders and 20 save thvr
from further loss aud waste. Further 81
asked that an account hc taken ui ti
conduct aud management IT the husinc.
81 the works 10y defendants ~ dipcor
aud they be- personally changed With los,
AMI damage done complainant and 9th,
Shareholder, and that complainant hc 4,
crccd 90 remove from tlirm his SHARE an
portion u ihc net earnings Of last scaso